GlaxoSmithKline linked with deal for Nanjing MeiRui Pharma

GlaxoSmithKline is believed to be closing in on the acquisition of Chinese firm Nanjing MeiRui Pharma.

The deal is likely to be worth about $100 million (£64 million) and represents the pharmaceutical giant's latest attempt to diversify by expanding its presence in emerging markets, Reuters reports.

Nanjing MeiRui specialises in treatments for urological conditions and is owned by Pagoda Pharma Group, a British Virgin Islands-based holding company.

Sources close to the negotiations suggested the transaction could be announced before the end of the year.

It is thought that Nanjing MeiRui's foothold in the Chinese urology market will help GlaxoSmithKline to raise awareness of its Avodart drug, which is used to treat benign prostatic hyperplasia.

David Redfern, chief strategy officer at the London-based company, told the Reuters Health Summit last month that GlaxoSmithKline would target small acquisitions.

During the event, Mr Redfern also suggested that ViiV Healthcare, the collaboration on HIV treatments between his firm and Pfizer, could be floated in an initial public offering once its drug pipeline has matured.